Notes

Blockchain: How to implement it in your business

A thorough understanding of blockchain's decentralized ecosystem is a requirement for implementing the technology.

A blockchain implementation can be simpler if you follow these tips, resulting in better ROI and better results.

1. Blockchain developers actually play with their tokens in public

Unlike centralized networks, blockchain networks are decentralized, so no one party owns the network and everyone participates equally. The only blockchains where this is true are public blockchains, specifically Ethereum.

On the surface, private blockchains are similar to blockchains, but they are controlled networks, and they have not been as successful because users are worried about a system that allows it to change its rules at any time. For value creation in a well-populated ecosystem where no one controls the network, consider a public blockchain.

There is no guarantee that the best technology will be the best option

Among the various public blockchains available, bitcoin, which is often called digital gold, and Ethereum, which has more developers than any of the others, are the most popular.

Depending on the measure used, you can always find a better operating system for your PC or mobile phone than the one you currently use, and a better networking technology than the internet. There is no need to search for the best. This scenario doesn't matter, since best is relative. Systems with the greatest developer and user base always win. You should build applications that create value on networks with a large buyer, seller, and investor base.

You should also disregard people who claim Ethereum is congested. In the same way, they say no one visits Venice anymore due to its overcrowding.

Rules for blockchain success

Incorporate blockchain technology into your thinking


In the same way that companies have business processes, blockchains also have smart contracts and tokens. Companies that develop blockchain-native concepts from their legacy vision will have the most success with blockchain implementations. Their thinking shifts from transferring documents to smart contracts and tokenization instead.

Consider a widget purchase order as an example. A document or an agreement to purchase a certain number of widgets at a certain price can be thought of as the document. Using a blockchain, we can exchange information between buyers and sellers as participants, or we can create a smart contract that trades widget tokens for money tokens. In fact, these are two separate worlds with the same effect and can sound similar. On blockchains, documents have no value. Conversely, tokens can be acquired, sold, financed, and borrowed.

The idea of moving value as easily as information is one of the main ideas behind blockchain. By simply exchanging documents, we miss out on one of the key ideas behind blockchain. Imagine moving documents online to illustrate this point. It's like receiving a picture of a page from the web server instead of reading the text. Although both documents can be read by people, the text-based HTML document, blockchain in this scenario, also can be searched and indexed by search engines. Fundamentally, one of these approaches is much more useful in the web ecosystem than the other.

In the fourth step, fix the actual problem

When it comes to blockchain implementation, fixing something that's not broken produces little ROI and is a waste of time and money.

By sending documents back and forth, we don't make use of one of the key ideas in blockchain, which is that value can be moved just as easily as information.

Successful blockchain projects work today to solve real problems rather than just laying the groundwork for tomorrow's problems. Problem-solving ideas with big visions are nice, but they rarely work. Our history of technology is one of building platforms upon products that solve one small problem very well, over and over again.

If you want to have more success, then you must pick a new problem that has not yet been solved by existing technology and build a system to solve it.

5. Business logic shared by multiple parties leads to the best ROI opportunities

Decentralized blockchains are great for integrating business processes between different companies because they offer a uniform set of rules for all participants. They allow information to be shared across multiple parties and include business logic, unlike electronic data interchange.

For example, when you buy goods, you usually work with a seller, buyer, and shipper. This is an ideal candidate because the rules are the same as for volume discounts and rebates, as well as scheduled pickups. By allowing subsidiaries or business partners to buy off the same contract, the system becomes even more valuable. As a result, logic, such as a volume discount, needs to be implemented across firms rather than within a single ERP system.

Blockchain deployment inside an enterprise is rare, since designing systems for decentralized design is more complicated and expensive than designing systems for centralized design. In Crypto marketing , shared rules can make a centralized system faster and cheaper.

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